On July 27, Sony
- Local currency sales grew 11.2% year over year, and both operating and net income turned into profits from year-ago losses.
- Margins improved considerably and passed into the black across the board. While margins remain slim, it's an encouraging sign.
- Free cash flow continues to be a money pit for Sony, and inventory is building up for the upcoming PlayStation 3 launch. Positive margins are nice, but positive cash flow would be even better.
(Figures in billions of yen, except per-share data)
Income Statement Highlights
Avg. Est. |
Q2 2006 |
Q2 2005 |
Change |
|
---|---|---|---|---|
Sales |
-- |
Y1,744 |
Y1,568 |
11.2% |
Net profit |
Y15.5 |
Y32.3 |
(Y7.3) |
NM |
EPS |
Y15.48 |
Y32.25 |
(Y8.68) |
NM |
Diluted shares |
Y14.76 |
Y30.75 |
(Y8.68) |
NM |
Get back to basics with a look at the income statement.
Margin Checkup
Q2 2006 |
Q2 2005 |
Change* |
|
---|---|---|---|
Gross margin |
30.5% |
30.04% |
0.46% |
Operating margin |
1.55% |
(0.42%) |
1.97% |
Net margin |
1.85% |
(0.46%) |
2.31% |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q2 2006 |
Q2 2005 |
Change |
---|---|---|---|
Cash + ST invest. |
Y1,022 |
Y988 |
3.44% |
Accounts receivable |
Y986 |
Y939 |
5.01% |
Inventory |
Y948 |
Y702 |
35% |
Liabilities |
Q2 2006 |
Q2 2005 |
Change |
---|---|---|---|
Accounts Payable |
Y762 |
Y666 |
14.41% |
Long-Term Debt |
Y868 |
Y678 |
28.02% |
Learn the ways of the balance sheet.
Cash Flow Highlights
YTD 2006 |
YTD 2005 |
Change |
|
---|---|---|---|
Cash From Ops. |
(Y98.0) |
(Y88.6) |
(10.61%) |
Capital expenditures |
Y125.7 |
Y106.8 |
17.7% |
Free cash flow |
(Y223.7) |
(Y195.4) |
(14.48%) |
Find out why Fools always follow the money.
Related companies:
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Canon
(NYSE:CAJ) -
Microsoft
(NASDAQ:MSFT) -
Koninklijke
Philips
(NYSE:PHG) -
NEC
(NASDAQ:NIPNY) -
Matsushita Electric Industrial
(NYSE:MC) -
Viacom
(NYSE:VIA)
Related Foolishness:
- Foolish Fundamentals: Inventory
- Foolish Fundamentals: Return on Invested Capital
- Foolish Fundamentals: Cash Conversion Cycle
- Foolish Fundamentals: Enterprise Value
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